The Anti-Corruption Bureau (ACB) on Thursday arrested retired Colonel Nelson Kauwa, whose company, Thuso Investments Group, was linked to contracts for the disputed payments at Malawi Defence Force (MDF) in connection to infamous cashgate scam.
According to ACB spokesperson Egrita Ndala, the graft bursting body arrested Kauwa in connection to a complaint they received in September 2013 alleging that government officers at Capital Hill were making entries in the Intergrated Financial Management Information System (IFMIS).
“The Anti-Corruption Bureau instituted investigations into the matter. It was established that some payments were made to Thuso Group without offering to Government any service.
“On 16th July, 2015 the Anti-Corruption Bureau arrested Retired Colonel Nelson Kauwa,” said Ndala.
According to her, Kauwa will likely be charged with three counts; conspiracy to commit an offence contrary to Section 35 of the Corrupt Practices Act; money laundering contrary to Section 35 (1) (c) of the Money Laundering, Proceeds of Serious Crimes and Terrorist Financing Act; and theft contrary to Section 278 of the Penal Code.
He was taken to Court where he was granted bail after paying and producing K1 million bail bond and two sureties bonded at K500,000 cash each, respectively.
The court also ordered him to report to the Bureau twice every month and also surrender all travel documents to the ACB.
ACB recently also arrested MDF Commander General Henry Odillo (retired) and his then deputy Clement Kafuwa where they were formally charged in relation to a multi-million dollar corruption allegations. Their trial is yet to start but they are on bail.
The two former top generals have been charged with abuse of public office, negligence by public officer in preserving government property and money laundering.
The two are accused of arranging a contract to supply military equipment which was never delivered.
Odillo and Kafuwa were apparently signatories of several cheques, including K3 billion to International Procurement Services (IPS) owned by businessperson Osward Lutepo—who is also answering his own money laundering charges—and K1.5 billion to Thuso, co-owned by Kauwa and Alexander Banda, according to information sourced from ACB.
Represented by lawyer Donvan Silungwe, Odillo and Kafuwa deny any wrongdoing.